Current Current Marketing Marketing

Issues SeminarIssues SeminarBA635Dr. Ed Forrest

(Office) 786-4161 / (Cell) 854-8784 Email: afejf1@uaa.alaska.edu

W3site: http://faculty.cbpp.uaa.alaska.edu/afef/

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First, buyers are no longer paying much attention. Several studies have confirmed that in the "buyer's decision journey," traditional marketing communications just aren't relevant.

Second, CEOs have lost all patience. In a devastating 2011 study of 600 CEOs….77% have had it with all the talk about brand equity that can't be linked to actual firm equity or any other recognized financial metric. 3

Tonight:

• Address defining elements of course:

•What is Marketing•What are the “Current Issues”

• Organize / Select Research Topics/Teams ….

5

Everything is

Online

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What is Marketing

?

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… Innate sense for marketing

I’m I’m

calling it calling it

HOTHOT

““The Dawn of Marketing”The Dawn of Marketing”

For 1,000’s of years…

bartered & traded “branded” goods & services

I thinkI think

might be might be

betterbetter

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Everybody’s a Marketer:Everybody

promotes themselves….

Packages themselves …..

Everybody has their price……

The Marketing Process:

Situation AnalysisSituation Analysis Strategic Strategic PlanningPlanning

•CCompanyompany

•CConsumersonsumers

•CCompetitorsompetitors

•CConditionsonditions• PESTPEST

TargetTargetMarketMarket

Product Place

PromotionPrice

TargetTargetMarketMarket

Product Place

PromotionPrice

TargetTargetMarketMarket

Product Place

PromotionPrice

The Marketing Mix:The Marketing Mix:

Marketing StrategyMarketing Strategy

Growth & Growth & CompetitiveCompetitive StrategiesStrategies

P’s

WM

TGT

E

D

CN

G

F

Service Positioning Positioning StrategyStrategy

55thth p p =p2p=p2p

Classic Functional Definition

All activities performed in between:

The Point of ProductionThe Point of Production &

The Point of ConsumptionThe Point of Consumption

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11stst Formal Definition Formal Definition ~1919~1919

Marketing defined as ‘‘the manner in the manner in which the product which the product is disposed of, the is disposed of, the way in which it is way in which it is distributed…, distributed…, through various through various channels of channels of trade.” trade.”

*Marketing and Merchandising by Ralph Butler & John Swinney,

•Book distinguishes marketing from merchandising,

•w/ marketing being something manufacturers do •& merchandising being the domain of jobbers; retailers.

Marketing DefinedMarketing Defined -1935 -

“The performance of business

activities that direct the flow of goods &

services from producers to consumers.”

Marketing Defined-Marketing Defined-as a Process- 1985as a Process- 1985

"The process of planning & executing the conception,

pricing, promotion & distribution of ideas, goods

& services to create exchange & satisfy

individual & organizational objectives"

The The Latest Official Official AMA Definition AMA Definition (circa (circa

2004)2004)

..an organizational function & a set of processes

for creating, communicating & delivering value to customers

& for managing customer relationships in ways that benefit the organization & its stakeholders

Why the changed focus?

What happened between 1985 & 2004 that made the AMA change the definition of marketing?

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Marketing should be customer-

centric -- not brand-centric"

The 1985 definition was not encompassing enough. The new definition more clearly infuses the customer into marketing."

The AMA Rationale: “Technology & marketing been changing quite rapidly over last five to 10 years…

Focus on Focus on ConsumerConsumer–Not Not productproduct

Long –Term Long –Term RelationshipsRelationships Not Short-term Sales

Management Reorientation

Marketing > Function =An Orientation

“Marketing is…

the whole business seen ….

from the customers’ point of view.”

“The aim of marketing is to

know & understand the customer so well

the product or service …sells

itself.”

~ Peter F. Drucker

“Marketing is too important to be left to

the marketing department.”

The marketing department did the marketing…Now everyone does some marketing

Company was the unit of analysis.........Now whole value chain is unit of

analysis

Average ConsumerCustomer AnonymityStandard Mktg. Mix

Mass ProductionMass DistributionMass AdvertisingMass PromotionOne-Way Comm.

Economies of ScaleShare of MarketAll Customers

Customer Attraction

Must Change Your focus & objectives:

Individual CustomerCustomer Relationship

Customized Market Offering

Customized ProductionIndividualized Distribution

Individualized MessageIndividualized Incentives

Interactive Communication

Economies of ScopeShare of Customer

Profitable CustomersCustomer Retention

From: To:

Marketing

Next Step- ID the issues…

Ten Issues Marketers Should Have on Their 2012 Agenda | Special ...

adage.com/article/special-report...issues-marketers-2012.../231502/Cached – Here are 10 issues for marketers in 2012

Ramkhamhaeng University  Institute for International Studies

GB 635 Current Issues in MarketingCourse Outline

London Metropolitan University MK3P04 Current Issues in Marketing

Syllabus Developing criteria to

evaluate marketing plans against selected issues.Creating appropriate research methods to investigate issues.Ethics and the practise of marketing

Sample issues:

Green MarketingConsumerismUse of I.T. in marketingBrand ValuationStereotyping in advertising

Marketing performance The Creation of Customer Satisfaction & ValueBuyer Behavior Relationship Marketing Inter-firm Relationships in Marketing Services Marketing & Service Quality Competition & Strategy Marketing and Information Technology Marketing Globally Ethics and Legal Issues in Marketing

Marketing Issues- as delineated Marketing Issues- as delineated by by 1999 UAA Syllabus1999 UAA Syllabus……

As it is -On Any Syllabus, any On Any Syllabus, any Year or Day- One can find Year or Day- One can find Issues ofIssues of:Product QualityService QualityConsumer

Confidence/SatisfactionValue/Pricing PracticesFree/Fair tradeGlobalizationAdvertising (volume, veracity,

political-correctness)

What’s most relevant-

Marketer- Issues = factors

that affect sales

• Consumer-Issue = factors

that affect one’s sensibilities

Depends on Your Perspective:

Fact is--these & most issues…

Are RE-CURRENT

issues- that Ebb & Flow

w/ socio-economic

events

We could- examine all these issues 1 by 1…

Quite taxing

& Just too

Superficial

Examining only symptoms --not diagnosing the

cause

“Yes… you seem to be suffering

from a marketing issue”

Ergo- the Real Question

is….

Ergo- the Real Question

is….Where do marketing issues come from?

Marketing’s “utility”/value derived from its Facilitation of Exchange!

Willing

to sell

Willing

to buy

Temporal UtilitySpatial Utility 

Transactional Utility

Marketing

Key Point: Keep Marketing in Perspective

Anything/Everything one does to facilitate

exchange

Whatever impactsWhy- What- Where- When- How Exchange occurs…

is (or becomes) an Issue…

Marketing Issues in Perspective

Marketing - part of Business & Business - part of Society

Marketing

Business Society

“Societal Change” creates

“issues” for Business…

which creates

“issues” for Marketing

One needs to identify-anticipate-

understand

Thus- in order to identify- anticipate- understand

Marketing Issues in particular

Societal Change in general

Society Defined:

A group of humans broadly distinguished by:

mutual interests, participation in

characteristic relationships,shared institutions, &a common culture

Hence- our search for marketing issues begins w/ examination of…

Patterns of/changes to:

human interests, relationships, institutions &

culture…

…become marketing issues

THUS-

In the final analysis marketing strategy is formulated to

address…

& what better time to study

Societal Change…We are living thru one of the great periods

of societal change in the

history of humankind…

… in the way we live, communicate, work, produce & consumelive, communicate, work, produce & consume……

We’re in midst - next great Paradigm Shift…Paradigm Shift…

An entirely new & increasingly

complex ecosystem has emerged,

which impacts the way people

connect, engage, influence, --& are influenced.

Social Media Revolution

Major Marketing Issues: 2012

#1: How do I measure the effect of social media marketing on my business?

#2: How do I integrate and manage all of my social media marketing activities?

#3: What are the best ways to sell with social media?

#4: How do I improve customer engagement with social media?

Online Ad Spend to Overtake TV by 2016

Social Media Not Only Issue:

the keyword has changed… For anyone going into business these days

The New keyword-

Algorithm

Requisite for today’s marketer: Apply Tools & Technologies

that generate, capture, analyze & leverage DATA

DATA

Automated online assistant

Business intelligence

Business Relationship Management

Comparison of CRM systems

Consumer Relationship System

Customer Experience

Customer experience transformation

Customer Intelligence

Customer service -

Data management

Data mining

Database marketing

E-crm

Employee experience management (EEM)

Enterprise Feedback Management (EFM)

Partner Relationship Management (PRM)

Predictive analytics

Professional services automation software (PSA)

Sales force management system

Sales intelligence

Sales process engineering

Support automation

Supplier relationship management

International Customer Service -

Vendor Relationship Management

New Mrktg Skill Sets

• Lead Mgt • Sales Force Mgt

•Digital Asset Mgt •Web Content Mgt •Marketing Resource Mgt •Marketing Operations Mgt

• 6 decades into the computer revolution

• 4 decades since the invention of the microprocessor

• 2 decades into the rise of the modern Internet

----all the technology required to transform industries thru software finally works & can be widely delivered @ global scale

In 2000..the cost of a customer running a basic Internet application was ~$150,000 a month. …

same application today in Amazon's cloud costs ~$1,500 a month…

Today: •The world's largest bookseller, Amazon •largest video service -Netflix•The dominant music companies Apple's iTunes, Spotify, Pandora•The fastest growing entertainment companies are videogame/software designers •The largest direct marketing platform—Google•The fastest growing telecom company is Skype•And Higher Education is being MOOCified by Coursera

I Will Create Jobs I Will Fix the

Economy

Ultimately- Most Critical Competency = Ability to

Act on Results of Analyses

Kaiser